Thursday, 8 September 2016

Changing
your attitude is one of the most direct ways of changing your life. It is true
when our elders say that noone else is responsible for what happens to you but
you. So, instead of complaining about things which you don’t like in your life,
you can take the required steps of altering your lifestyle. Though you won’t be
surprised to know this, this also has a direct relation with your finances.

Are
you tired of living paycheck to paycheck? Have you been regularly cutting off
on your phone expenses or making lame excuses about skipping dinners with
friends and family? If answered yes, it’s high time you adopt a frugal
lifestyle by following some thrifty rules. Let’s take a look at some of the
best ways in which you can lead a frugal life.

Know your dollars: You should be ridiculously
well-acquainted with the exact amount that you make in a month, the amount that
you spend and where each and every dollar goes. These are some of the baby
steps to frugal living. Without having this basic knowledge on your money,
saving money and successful budgeting will be a far-distant dream.

Stay within your means: When you’re a beginner,
living within your means is definitely going to be a great start but there’s a
subtle difference between living within your means and living below your means.
The latter is where the actual magic happens. The extra money that you generate
is the capita for saving and this is the main thing which drives long term
wealth building.

Know the difference between
investing and spending:
You may feel that spending and investing is the same thing but they’re entirely
different. Investing happens when you dedicate cash for some tangible asset
like your home, job training or shares in mutual funds. Spending on the other
hand is using cash for something that will depreciate in value and not offer
you any kind of long-term benefit. Dinners, a new summer wardrobe are some such
expenses. Being frugal needs you to understand this difference.

Wants and needs are different: There is a thin line between
what you want and what you need. Needs are necessities, things which you can’t
do without and wants are things which you don’t need but you wish to own.
Before purchasing anything, check whether it is a need or a want.

Currently,
when we speak about frugal living, all we do is talk about some baby financial
steps. It seems that through the past few generations, people aren’t using
common financial sense and hence they perhaps need to buck up with their money
decisions.

About Author

Amit Singh is a founder of Theinternationalfinance.com he share his immense knowledge of Finance in this blog.